TNAG-1370-FCO40-1816-Relations-between-Hong-Kong-and-China-1985 — Page 33

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for one reason or another, previously refrained from entering. As these China-interest companies move into

areas where they have to face new and more severe competition, their business attitudes have become more open, outward-looking and market-oriented.

5.

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Another important change came in 1979. In line

with the overall policy stance of more liberal attitude towards foreign economic and trade relations, the Chinese Government has since 1979 allowed the three municipalities

(Beijing, Shanghai and Tianjin), some provincial

authorities and some central government ministries the

right to engage directly in foreign trade. Furthermore, four coastal cities Shenzhen, Zhuhai and Shantou in

Guangdong and Xiamen in Fujian have been designated as Special Economic Zones (SEZs), which are endowed with greater autonomy in the matters of foreign trade and investment. These new policies have in effect, diluted

the monopoly position traditionally enjoyed by companies

like China Resources as more and more China-interest

companies have come to Hong Kong to do business. Fujian

Enterprises Co. Ltd. (Hua Min) and Guangdong Enterprises

Ltd. (Yue Hai) are notable examples of provincial

enterprises which have become very active in recent years

after the decentralization of trading rights to provincial

authorities. At one stage in 1980-81, the number of

China-interest agents in Hong Kong is reported to have

reached 300, causing much confusion and very vigorous

competition. Since then, China has made efforts to put its house in better order and according to an estimate

made by the Hong Kong General Chamber of Commerce, there are now about 80 "well-established" Chinese representative offices in Hong Kong; still a large number compared with

DENTIAL

- 機室